Host Analytics Raises Series B

Host Analytics, an Saas corporate performance management vendor based in Redwood, Calif., completed an up-round Series B financing by existing investors Advanced Technology Ventures (ATV) and Trident Capital and new investor StarVest Partners.

Press release:

Host Analytics, the fastest-growing SaaS corporate performance management (CPM) vendor, today announced it has completed an up-round Series B financing that netted the company multiple millions of dollars in additional expansion capital. Coming off its best year ever and record-breaking success in Q1, Host Analytics will use the new resources to accelerate recent momentum. The company is planning to expand its product suite and will implement aggressive new sales and marketing programs that solidify its position as a SaaS market leader among midmarket companies and large enterprises.

With venture capitalists focusing primarily on the biggest and best opportunities, Host Analytics’ Series B round came together quickly. Existing Host Analytics’ investors Advanced Technology Ventures (ATV) and Trident Capital are joined in the new round by StarVest Partners, whose previous investment successes include NetSuite and MessageOne, which was acquired Dell Computer. In conjunction, Deborah A. Farrington, General Partner with StarVest Partners, will join Host Analytics’ board of directors. A 30-year veteran in financial services with deep experience in SaaS, Ms. Farrington spearheaded the first institutional investment round in NetSuite, leading to its $1.6 billion IPO in 2007. She ranks among the top venture capitalists on the “Forbes Midas List.”

“Based on our experience in building leading SaaS companies, Host Analytics meets StarVest’s criteria for a superb investment,” said Ms. Farrington. “It has great management: CEO Jon Kondo is an accomplished leader who has a history of sales execution and building strong management teams. It is in a high-growth market: Corporate Performance Management is an exciting sector within on-demand BI for the mid-market and mid-sized enterprise, which is poised to grow rapidly. It has a great value proposition for the customer: with its reasonable annual cost and sophisticated application, it has the opportunity to be a truly disruptive technology — expanding the market by offering a high-quality product at a much lower price than existing on-premise solutions. With these attributes, we believe Host Analytics is well-positioned for leadership in its sector. We are also delighted to be co-investing with Trident and ATV and look forward to adding value to a winning team.”

Despite difficult economic conditions, Host Analytics is growing rapidly. The company has more than 8,000 active paying users and is consistently winning business over larger vendors like SAP and Oracle. Host Analytics is also experiencing growing interest and success replacing business budget and planning systems built with Microsoft Excel. Mid-market and large enterprises are choosing Host Analytics because it has the most mature and comprehensive SaaS CPM suite on the market. Since 2000, the company has delivered 16 major product releases and is the only SaaS vendor to offer an integrated suite of budgeting, revenue planning, financial consolidation and balanced scorecard solutions.

“We were very excited that several potential new investors expressed interest and recognized the increased value we created with the work and success over the last year,” said Jon Kondo, CEO at Host Analytics. “ATV, Trident and StarVest are synonymous with investment success and each was very excited to join the new round. Everyone appreciates the magnitude of the opportunity before us, and is eager to accelerate the momentum we have gained in the last year. We are confident that this latest round will help us more rapidly grab market share and more quickly achieve our goal of attaining profitability.”

“The market acceptance of Software as a Service and emergence of market leaders continues at a rapid pace even in the current economy,” said Steve Baloff, general partner at Advanced Technology Ventures. “Host Analytics is a great example of how a solution designed for SaaS can deliver what the marketplace wants: ease-of-use, quick implementation, a constant flow of innovation, and fast time-to-value. We believe that Host Analytics is on a clear path to market leadership and this new investment of funds will accelerate that process.”

“Host Analytics’ success is a solid indicator that corporate performance management is becoming the next big analytic application in the fast-growing on-demand Business Intelligence market,” said Evangelos Simoudis, managing director at Trident Capital. “SaaS-based CPM is clearly a better alternative to the inefficiencies and inaccuracy of Excel-based budgeting and planning, while at the same time delivers a far better value proposition than legacy on-premise performance management solutions. This amplifies the disruptive impact of Host Analytics in the performance management solution market.”

“Host Analytics introduces a simple approach for organizations to purchase and deploy performance management for business needs across finance and operations and support a broad range of consolidation, analytics, planning, budgeting, reporting and other key capabilities,” said Mark Smith, CEO & EVP Research, Ventana Research. “By providing a suite of applications on a common platform in the cloud computing environment, Host Analytics has established a new standard to help organizations manage performance, increasing effectiveness, and transform management without the IT hassle or budget battles.”

About StarVest Partners

StarVest Partners is a New York-based venture capital firm with $400 million under management that is funding technology-enabled business services companies throughout the U.S. The firm’s value-added partnership maintains a laser focus on four key emerging technology and services sectors: Software as a Service (SaaS), Internet Marketing Services, eCommerce Services and Data Aggregation Services. StarVest combines a sophisticated investment background with the experience to foresee opportunities for both its portfolio companies and funding partners. The firm’s general partners are Larry A. Bettino Deborah A. Farrington, Laura B. Sachar and Jeanne M. Sullivan.

StarVest gained national recognition in 2007 as the lead venture capital firm in NetSuite, whose December 2007 initial public offering opened with a $1.6 billion market capitalization, the highest market capitalization of any venture capital-backed technology IPO since Google. StarVest was also one of the first institutional investors in MessageOne (acquired by Dell Computer in April 2008). More information about StarVest is available at the company’s Web site: www.starvestpartners.com.

About Advanced Technology Ventures

Founded in 1979, Advanced Technology Ventures (ATV) is a bi-coastal venture capital firm with more than $1.8 billion in capital under management. The firm works closely with entrepreneurial teams in several technology markets, including IT, healthcare and cleantech, to transform emerging-growth companies into market leaders. After nearly 30 years, ATV has established a track record of success helping to build strong, sustainable companies. For more information, visit www.atvcapital.com.

About Trident Capital

Trident Capital is a leading venture capital and private equity firm with over $1.5 billion of capital under management, including $400 million raised in its recently-closed Fund VI. Trident focuses on investments in the information services and software sectors across a variety of industries. Within its sector focus, Trident invests across multiple stages, including traditional venture capital investing as well as investments in micro-cap public companies, buyouts and consolidation platforms. The Firm has made over 100 investments since its inception. Trident has investment offices in Palo Alto, Calif. and Westport, Conn. For more information, visit the firm’s website at www.tridentcap.com.

About Host Analytics

Host Analytics is the leading provider of on-demand corporate and financial performance management solutions. Host Analytic’s solutions help financial, line of business and departmental executives improve their budgeting, forecasting, financial consolidations, dashboarding, scorecarding, reporting and analysis. Host Analytics delivers its suite of corporate performance management solutions via the Software as a Service (SaaS) model. Host Analytics, a pioneer in providing comprehensive and easy to use CPM solutions, was founded in 2000 and expanded its SaaS offering in 2005 to include a complete suite of CPM solutions.

Host Analytics helps organizations streamline the performance management process, align the planning process with business strategy and effectively measure performance and manage change. As a SaaS delivered solution, Host Analytics customers realize fast time to value through quick implementation of solutions, the highest levels of user adoption, effective empowerment of business users and a continuous flow of Host Analytics provided solution innovations and improvements.

Host Analytics serves the enterprise, large and midsized company and public sector markets including industry leading companies like JP Morgan Chase, Procter & Gamble, Otis Spunkmeyer, Pitney Bowes, and Nortel Networks. Host Analytics was included in JMP Securities’ prestigious “Hot 100: The Best Privately Held Software Companies.” For additional information, visit http://www.hostanalytics.com/ or call (314) 588-2121.